Further to our conversation this afternoon,
I though it might be useful for me to set out Halifax's position
on money transmission and small business banking.

MONEY TRANSMISSION

Halifax welcomed the Treasury's recent announcement
that the OFT will take on responsibility for overseeing the UK
money transmission system. Improving the transparency of the money
transmission system is an important task; the Halifax will also
make a submission to the Treasury about the proposed new arrangements.

SMALL BUSINESS
BANKING

The Halifax believe that small business banking
is an attractive market segment. The sector's margins appear to
be generous in comparison with, for example, the Group's main
mortgages and savings business. The Group would consider entering
the market through the Halifax brand, provided it had the right
management team in place.